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Previously, we have discussed the troubles that
Sea Containers, Ltd. (NYSE: SCR-A) shareholders have
faced in light of troubling Company announcements.
Now it is clear that not only Sea Containers shareholders,
but certain Sea Containers note holders have been
negatively affected.
The troubles for shareholders began in March of this year.
Specifically, on March 24, 2006, prior to the market's opening,
the Company disclosed three troubling items. First, it would
discontinue its ferry business. Second, it would record a
$500 million impairment of certain assets. Finally, it would
restate its 2005 interim financial results. With respect to the
$500 million impairment charge, of which $415 million related
to assets in the ferry operations division, the Company stated
that it would recognize the charge during the fourth quarter
of 2005.
The bad news for Sea Containers note holders came later.
On June 13, 2006, the Company issued a press release
announcing that "it may be in default on its bonds.''
The press release emphasized that the Company "was unsure
if it would repay a bond due in October following a default by
French auto logistics company GAL -- the first European default
since February 2005.'' At the same time, rating agencies
predicted that "default rates (would) rise from very low levels.''
On June 13th, upon hearing of this news, the Company’s stock
price dropped $0.60 cents per share. Not only Sea Containers
shareholders, but its Note holders have lost tens of millions of
dollars in value. Specifically, it appears purchasers or acquirers
of the following series of notes of Sea Containers Ltd. between
March 24, 2003 and June 13, 2006, have been negatively
affected: 10.5% Senior Notes due 2012; 12.5% Senior Notes
due 2009; 10.75% Senior Notes due 2006; and 7.875% Senior
Notes due 2008.
Investors Lose Their Safety Net
Maryland-based SafeNet, Inc. (NASDAQ: SFNT) engages in the
development, marketing, and sale of hardware and software
information security products and services that protect and
secure communications, intellectual property, and information
and identities.
It has been alleged that the Company and certain individual
defendants violated federal securities laws by issuing false
and misleading documents. It is also alleged that that certain
SafeNet executives manipulated the Company’s granting of
stock options to provide themselves with unlawful benefits.
In recent months, SafeNet investors have been rocked by
three separate, troubling disclosures made by the Company.
1) The Company announced the need to restate financial
results for the second and third quarters of 2005 arising from
improper booking of costs and revenues related to its long
term contracts. 2) The Company announced the termination
of its CFO. 3) On May 18, 2006, after the close of trading,
the Company disclosed that it received a subpoena from
US Attorney's Office in NY and a document request from
the SEC.
On May 19, 2006, shares declined from $19.21 per share to
$14.93 per share, a decline of approximately 22%.
Investors who purchased the stock between March 31, 2003
and May 18, 2006, are affected. In addition, another group
that has claims against SafeNet is the former shareholders
of Rainbow Technologies, Inc. who approved the March 2004
merger of Rainbow with SafeNet and who exchanged their
shares of Rainbow for shares of SafeNet as a result of the
acquisition.
If you are an affected investor in any note holder in Sea
Containers, Ltd or an affected shareholder in SafeNet, Inc.
or any of the companies listed below (additional info regarding
these cases are available on our website), you may wish to
contact us at info@securitiessleuth.com or 877.511.4717 to
discuss your options:
Affiliated Computer Services (ACS)
CNET Networks (CNET)
F5 Networks Inc. (FFIV)
IMAX (IMAX)
Joseph A. Bank Clothiers (JOSB)
McAfee Inc. (MFE)
Power Integrations (POWI)
Semtech (SMTC)
Stage Stores, Inc. (SSI)
The Shaw Group (SGR)
Tier Technologies Inc. (TIERE)
Witness Systems Inc. (WITS)
Zale Corporation (ZLC)
Second, you should review for portfolio for class action cases
that have recently settled. If you are an affected investor –
you purchased any of these stocks during the relevant class
period, you may wish to contact the claims administrator to
obtain additional information. Remember, if you don’t submit
your claim form, you won’t receive your share of any settlement.
Symbol Technology, Inc. (SBL)
Class Period: March 2, 2000 to October 17, 2002
Claims Deadline: October 31, 2006
Claims Administrator: A.B. Data
Tellium, Inc. (TELM)
Class Period: May 17, 2001 to July 1, 2002
Claims Deadline: October 18, 2006
Claims Administrator: Analytics
Information regarding other recent settled cases, including
the cases listed below can be found at securitiessleuth.com.
Imperial Chemical Industries PLC (ICI)
Vistacare, Inc. (VSTA)
ARM Financial Group (ARMGQ)
Carreker Corp. (CANI)
Loewen Group Inc. (LWN)
Razorfish, Inc. (RAZF)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own tip-offs
at www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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